@RobertEG wrote:FICO scoring is not about payment of debt. It is about accumulating delinquences and derogs along the path of its payment. That is what FICO scores.
What I suggest, before you devlelop a plan, is to first sit down and list each and every derog or delinqueccy in your CR, whether the account is open, closed, paid, or unpaid.
For each OC acount, each reported monthly delinquency, by date, and whether the debt was charged-off or later reported as a collection by a debt collector.
Payment does not erase any of those prior reportings without a deletion acceptance agreement with the OC or CA, or their willingness to, after paid, grant a good-will deltetion.
As for which accoounts, open or closed, to first concentrate of payment of unpaid debt, that is more dependent upon the future liabilites, both legal and credit scoring, that you still face. For example, unpaid debt on an OC account where prior reporting was only of monthly delinquencies could result, at any time, of the OC taking one or more of three actions. They can charge-off the debt, and report a CO to your CR, they can refer the debt for collection, or thay can just intitiate legal action. So you might want to know your SOL on the debt.
ONce a CA is reported, the same threat of legal action may linger. So again, know your SOL date.
Paying debt rmoves the chance of escalating actions, and does not erase prior credit reporting.
I have to respectfully disagree with you on this one Robert.
Payment history (payment of debt) is the most important aspect of scoring. I will grant you that derogatories are included as part of the payment history but to say that FICO scoring is not about payment of debt is less than accurate IMO.
For the education of the OP here is how FICO scoring is broken down:
And here is what is included in payment history:
- Account payment information on specific types of accounts (credit cards, retail accounts, installment loans, finance company accounts, mortgage, etc.)
- Presence of adverse public records (bankruptcy, judgements, suits, liens, wage attachments, etc.), collection items, and/or delinquency (past due items)
- Severity of delinquency (how long past due)
- Amount past due on delinquent accounts or collection items
- Time since (recency of) past due items (delinquency), adverse public records (if any), or collection items (if any)
- Number of past due items on file
- Number of accounts paid as agreed
One last comment and I will hush. You wrote: It is about accumulating delinquences and derogs along the path of its payment. That is what FICO scores.
I have no derogatories (finally). Without those how then is my score calculated?
From a BK years ago to:
EX - 9/09 pulled by lender 802, EQ - 10/10-813, TU - 10/10-774
"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".